India, Canada finalise pact on foreign investment promotion

TORONTO: India and Canada have finalised an agreement that would boost economic ties between them and safeguard investors' rights in both countries.

The Foreign Investment Promotion and Protection Agreement (FIPA), expected to be signed soon, "will boost economic relations between the two countries and is viewed as a stepping stone to a full-fledged free-trade accord," Indian High Commissioner to Canada R L Narayan said on Saturday, inaugurating the Toronto Chapter of the Institute of Chartered Accountants of India (ICAI).

"New Delhi-Ottawa relations are improving, and forthcoming visit of Commerce Minister Kamal Nath to Canada later this month will further strengthen bilateral ties," he said.

"The agreement, designed to protect investors by defining their legally binding rights and obligations, will give new impetus to Indo-Canada economic relations," he said.

The pact would intensifying investment flows to the mutual benefit of both countries and create favourable condition for investment by investors in each other's country, Narayan said.

The creation of the Toronto Chapter was an indication of the capability and competence of the Indian professional community in Canada. "By bringing together the member of the ICAI living in the Greater Toronto Area, the chapter will not only foster the professional links but also promote fellowship and partnership among its members," Narayan added.

In a message, Ontario Premier Dalton McGuinty said that the Toronto Chapter of ICAI, the first in North America, would provide an important forum through which graduates of the institute could share professional expertise and knowledge and help in strengthening bilateral ties.

Harinder Takhar, Ontario Minister of Small Business and Entrepreneurship, who read the Premier's message, said the Indo-Canada relations were at a stage of take-off. A number of Indian companies were not only making investment in Ontario but also creating jobs for Canadians.

Referring to challenges faced by foreign trained professionals, he said the government has appointed a "Fairness Commission" which looks into grievances of professionals.

Takhar said the government has formulated an ambitious programme for settlement of foreign trained professionals.

Sunil Talati, President of the ICAI, said the institute has taken a number of steps to make Indian professionals to match international standards and providing them continuing education.

It would soon set up Centre of Excellence in Hyderabad that would be functional by June 2008 and it would help Indian professionals so that they could compete at global level, he said.

ICAI was in process of conversion of 29 International Financial Reporting Standards formulated by International Accounting Standard Board, and it would be in position to implement them in next four years, he said.

Talati said the Indian Chartered Accountancy profession, which is 1,35,000-strong and being one of the largest accounting bodies in the world, was being served in an excellent manner beyond India through the efforts of its foreign members who were proving themselves as excellent professionals.

Himanshu Shah, Chair of Toronto Chapter of ICAI, said the chapter would go a long way in strengthening accounting profession in Canada and India and would work for mutual recognition of Indian designation with the Canadian Institute of Chartered Accountants and the Institute of Chartered Accountants of Ontario.